- Exam Code: L4M5
- Exam Name: Commercial Negotiation
- Updated: Oct 11, 2026
- Q & A: 387 Questions and Answers
CIPS Commercial Negotiation : L4M5
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CIPS Commercial Negotiation Sample Questions:
Question #1
Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?
- A. Yes, characteristics include risk management and strategic planning
- B. No, this can be classified as adversarial
- C. No, collaboration does not require commitments from either side
- D. Yes, characteristics include arm's length transactions and minimal communication
Correct Answer: A π³οΈ
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Question #2
A negotiation process ends once the negotiating meeting has finished. Is this statement true?
- A. No, best practice would include a period of reflection after the meeting as part of the process
- B. Yes, because both parties have all of the emotional intelligence they need to proceed
- C. No, the negotiation of terms should always continue after the meeting and until signed by the supplier only
- D. Yes, provided that the meeting results in a win-win for both parties
Correct Answer: A π³οΈ
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Question #3
John Browne, a junior buyer for a corporation, is analysing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research. Should John consider the foreign exchange rates?
- A. Yes, only if the organisation can handle foreign currencies in their accounts
- B. No, as they only affect the bank's interest rates for loans
- C. No, exchange rates only apply to the national economy
- D. Yes, as they can affect profit and turnover
Correct Answer: D π³οΈ
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Question #4
Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?
- A. Telephone
- B. In-person meeting
- C. Web conferencing
- D. Teleconferencing
Correct Answer: C π³οΈ
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Question #5
Which of the following types of question are likely to be the most effective to check facts in negotiations?
- A. Hypothetical
- B. Leading
- C. Open
- D. Closed
Correct Answer: D π³οΈ
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